Homeowners Insurance Claim FAQS

Should I file a Home Insurance Claim?

We hear this question everyday and unfortunately the answer all depends on the details. If the amount of your property damage is less than or equal to the amount of your deductible, it is not a good idea to file a claim. We assess the damages to your home using the same “Xactimate” software as your insurance company which will give us a total cost of repairs before you file a homeowners claim. Call us today to see if an insurance claim on your home is worth filing!


If I file a Homeowners Insurance Claim will my Premium Go Up?

Multiple claims in a short period of time can cause insurance companies to look at you as higher risk. Some companies will increase your annual premium or decide not to renew your policy once it expires if they feel they are losing money insuring you. The best thing to do is to call a Public Adjuster to determine if a claim is worth filing!


Am I Paying Too Much for my Homeowners Insurance Policy?

There are many types of Homeowners Insurance Policies on the market in NJ. The rule with insurance has always been “it is better to have it and not need it, than need it and not have it”! Sometimes, however, your homeowners insurance policy covers more than you may need. For instance, we have seen a NJ Condo Insurance Policy that included $200,000 in personal property coverage for a family with less than $50,000 in personal property!

The average price for a NJ homeowners insurance policy in recent years is $1,058 according to the Insurance Information Institute. (source).  If you feel like you are overpaying for your policy and would like to speak to one of our Insurance Claim Experts about the amount of coverage you have, feel free to call us at no charge! We offer a free policy review and look forward to answering all of your questions!


What Happens If My Homeowners Claims Gets Denied?

The first thing you should do if your claim gets denied is request the denial in writing. Many times an inexperienced insurance adjuster will deny a property claim because they misread or misinterpreted your policy language. Many reasons for denial are arguable if you know what you are doing Hiring a Public Adjuster  to review your denial costs you nothing and could result in getting your homeowners insurance claim re-opened and Paid!


 

Homeowners Insurance Claim Glossary

 

What does ACV Stand For? – Actual Cash Value. This is the value you would pay for something in its current condition. Example: You bought your sofa for $1,000 5 years ago. ACV would be the Replacement Cost minus the depreciation for it’s condition and age. Instead of paying you the $1,000 to buy a new sofa, the insurance company would offer you maybe $600.

What does RCV Stand for? – Replacement Cost Value. This is the amount it would cost you to replace something in todays market. RCV policies tend to cost more but pay more than an ACV policy. Call Atlas Adjustments LLC. to learn more about ACV vs. RCV in homeowners insurance.

What is Additional Living Expenses? – Additional Living Expenses (ALE) is coverage found in most homeowners insurance policies which covers the reimbursement of

Insurance Proceeds Contract – A construction agreement which the contractor agrees perform all work in the insurance scope for the amount that the insurance company pays. They will do whatever the insurance company pays for, nothing more nothing less.

Homeowners Insurance Subrogation – when an insurance company goes after the party at fault to recover money they paid on a claim. Example: Your neighbor has a house fire. The fire is so intense that it melts the siding on your house. Atlas Adjustments – Public Adjuster will get you paid through a claim on your insurance policy, but your carrier will likely subrogate against your neighbors insurance since the fire started at their property. Subrogation between insurance companies does not usually involve you, the building owner. It is something they handle on their own.

Reservation of Rights Letter – Your insurance company may send you a reservation of rights letter if they are considering denying your home insurance claim. If you receive a reservation of rights letter from your insurance company contact Atlas Adjustments immediately to review your claim!

Insured: Someone who has insurance (homeowner, landlord, renter)

Insurance Agent – An insurance agent is licensed to sell insurance.

Independent Adjuster: An Independent Adjuster is an home insurance adjuster who is not directly employed by an insurance company, but is contracted to perform an evaluation of property damages. They work FOR the insurance company not for the homeowner.

Public Adjuster – A Public Adjuster is licensed to represent property owners on home insurance claims. They manage and negotiate home owner claims by using their own Xactimate Estimate, differences reports, insurance inventory report, policy knowledge etc. Public Adjusters do NOT work for the insurance company. They only represent the interests of the homeowner.

Home Insurance Claim: A request from a homeowner to their insurance company to be reimbursed for property damage.

Co-Insurance: Co-insurance in Property Insurance is commonly found in commercial policies but also frequent in other types of policies as well. Co- insurance could be considered a penalty for an insured if they do not report the correct value on their property.

Homeowners Insurance Deductible: The amount an insured must pay before the insurance company would offer payment. The amount of your deductible is subtracted from your total claim. Example: Atlas Adjustments negotiates your homeowners insurance claim to  $10,000 in damages. Your deductible is $1,000. Your payment would be $9,000 once the deductible is subtracted from the total.

Homeowners Insurance Effective Date: The date which a policy is effective aka “start date”.

Insurable Interest: Most homeowners policies require an insured to have an insurable interest in the property. Entities not subject to financial loss from an event do not have an insurable interest and cannot purchase an insurance policy to cover that event.